Does a newborn dream while he's sleeping?

Yes, they do! As Hui Qun mentioned, that's why babies cry in their sleep. Sleeping babies enter the REM (rapid eye movement) sleep phase — the one in which adults dream. Newborns spend half their sleep time in REM, accompanied by jerking eyeballs, twitching bodies and a characteristic saw-toothed pattern on brain scans. http://m.livescience.com/33702-babies-dream-sleep.html